Skip to main content
Message Font: Serif | Sans-Serif
No. of Recommendations: 11
A poster on the Yahoo YONG board posted the response he got from IR. I'll paste it here. I think they should make this information available on a PR for everyone to see.

Response from Yongye IR 7 minutes ago This is the response I had to my email:

Below please find the response to your question from the Company:

A Seeking Alpha article claims that our factory could not have manufactured the amount of product that we claim to have sold. Obviously, the author has little understanding of real world manufacturing and capacity issues. The official capacity reported for our factory represents the capacity under normal operations. There is substantial room to exceed that capacity if we operate our factory on weekends, run multi-shifts and save on maintenance time. Also, our manufacturing is a combination of various batch and line processes with different bottlenecks that present both temporary and long term capacity improvement opportunities. During the past several years, our sales consistently exceeded our expectations, as evidenced by our multiple increases in sales guidance. As a result, our factory has consistently been operating at a higher than normal capacity utilization, especially during peak seasons (i.e. second and third quarters). We also shared in our earnings call that our capacity improvement project in 2010 was conducted in early 2010 and we announced it in mid-2010. We also occasionally outsourced certain processes during peak seasons to manage our production needs.
Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.